Raymond James Financial (NYSE:RJF) Announces Quarterly Earnings Results

Raymond James Financial (NYSE:RJF) posted its earnings results on Wednesday. The financial services provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.83 by $0.03, FiscalAI reports. The business had revenue of $3.74 billion for the quarter, compared to analysts’ expectations of $3.83 billion. Raymond James Financial had a return on equity of 17.74% and a net margin of 13.07%.The business’s revenue was up 5.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.93 earnings per share.

Here are the key takeaways from Raymond James Financial’s conference call:

• Raymond James reported record net revenues of $3.7 billion, net income available to common shareholders of $562 million (adjusted EPS $2.86), and achieved its 20% adjusted pre-tax margin target, showing strong profitability and returns (ROE 18%, adjusted ROTCE 21.4%).
• Recruiting and asset-gathering momentum was strong — the firm said ~$31 billion of net new assets in the quarter (annualized net new asset growth ~8%) and nearly $69 billion of recruited assets across platforms over the past 12 months.
• Management continues active capital deployment — announced acquisitions (Clark Capital and GreensLedge), repurchased $400 million of stock this quarter at an average $162, and retains a $400–$500M quarterly repurchase target while keeping a healthy Tier 1 leverage ratio of 12.7%.
• Capital Markets revenue weakened (segment net revenues $380 million, pre-tax income $9 million) due to lower M&A/advisory and debt underwriting activity versus tough comparables, creating near-term headwinds despite a described robust pipeline.
• The bank reported record loans of $53.4 billion (strong securities‑based lending growth) and record pre-tax income $173 million, but management expects near-term NII and related fees to be down in Q2 from Fed rate cuts and fewer billing days, so bank cash‑income dynamics are mixed.

Raymond James Financial Trading Down 1.2%

Shares of NYSE:RJF traded down $2.04 during midday trading on Friday, reaching $165.57. The company’s stock had a trading volume of 128,209 shares, compared to its average volume of 1,172,895. The business has a 50 day moving average price of $164.29 and a 200 day moving average price of $164.63. The company has a quick ratio of 1.04, a current ratio of 1.07 and a debt-to-equity ratio of 0.44. Raymond James Financial has a 1 year low of $117.57 and a 1 year high of $177.66. The firm has a market cap of $32.70 billion, a price-to-earnings ratio of 16.19, a price-to-earnings-growth ratio of 1.32 and a beta of 0.99.

Raymond James Financial Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, January 2nd were issued a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 1.3%. This is a positive change from Raymond James Financial’s previous quarterly dividend of $0.50. The ex-dividend date was Friday, January 2nd. Raymond James Financial’s payout ratio is 20.99%.

Insider Transactions at Raymond James Financial

In other news, insider Paul C. Reilly sold 130,687 shares of the business’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $163.15, for a total value of $21,321,584.05. Following the completion of the sale, the insider owned 260,546 shares of the company’s stock, valued at approximately $42,508,079.90. The trade was a 33.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Raymond James Financial

Several hedge funds have recently made changes to their positions in RJF. Sunbelt Securities Inc. acquired a new stake in Raymond James Financial during the 3rd quarter valued at $82,000. MUFG Securities EMEA plc bought a new position in Raymond James Financial during the second quarter worth about $83,000. EverSource Wealth Advisors LLC grew its holdings in shares of Raymond James Financial by 137.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,184 shares of the financial services provider’s stock worth $182,000 after purchasing an additional 685 shares in the last quarter. Fiduciary Trust Co bought a new position in shares of Raymond James Financial in the third quarter worth $202,000. Finally, CTC Alternative Strategies Ltd. acquired a new position in Raymond James Financial in the second quarter valued at about $215,000. Hedge funds and other institutional investors own 83.83% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on RJF shares. Morgan Stanley reaffirmed a “positive” rating on shares of Raymond James Financial in a research report on Monday, December 22nd. Citigroup reissued an “outperform” rating on shares of Raymond James Financial in a report on Thursday, October 9th. JMP Securities lifted their target price on Raymond James Financial from $185.00 to $190.00 and gave the company a “market outperform” rating in a research note on Thursday, October 23rd. Bank of America lifted their price objective on Raymond James Financial from $194.00 to $196.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 10th. Finally, TD Cowen restated a “hold” rating on shares of Raymond James Financial in a research report on Wednesday, January 14th. Four equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $182.17.

About Raymond James Financial

Raymond James Financial is a diversified financial services firm headquartered in St. Petersburg, Florida. Founded in 1962, the company provides a range of services to individual investors, businesses and institutions through a combination of wealth management, capital markets, investment banking, asset management, banking and trust services. Its business model centers on a network of financial advisors and broker-dealer operations that deliver personalized financial planning, investment advisory services and brokerage solutions.

The firm’s core offerings include private client wealth management delivered by independent and employee advisors, equity and fixed-income research, institutional sales and trading, and investment banking services such as mergers and acquisitions advisory and capital raising.